TaxTMI 
TaxTMI 
Can We Avail input tax credit on Bank Charges. Some GST officer saying we should not avail ITC on Bank Charges. Is that Blocked Credit or any specific condition to Avail Bank Charges ITC
Can We avail ITC on Bank Charges
13 Mar 2025 
6 Replies 
16447 Views Asked by
Input Tax Credit on bank charges allowed if invoice or equivalent documentation exists and ITC eligibility conditions are met.
Input tax credit for bank charges is available if the recipient holds a valid tax invoice or equivalent bank-issued document, has received the service, the bank has charged and remitted GST, and the recipient complies with timely return filing and other ITC eligibility conditions; consolidated monthly invoices or bank statements may suffice under relaxed invoicing norms and can be supported by GSTR-2A/2B entries. (AI Summary)
Input tax credit for bank charges is available if the recipient holds a valid tax invoice or equivalent bank-issued document, has received the service, the bank has charged and remitted GST, and the recipient complies with timely return filing and other ITC eligibility conditions; consolidated monthly invoices or bank statements may suffice under relaxed invoicing norms and can be supported by GSTR-2A/2B entries. (AI Summary)